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DEPARTMENT OF AGRICULTURE

DIVISION 43

ASSESSMENT CHALLENGE PROCEDURES

603-043-0010

Scope and Purpose

These rules establish a challenge process for those producers who dispute the amount of a commodity assessment levied against the producer pursuant to ORS 576.325(3)(a) and procedures for the affected commission to process the challenge. These rules also establish guidelines for the commission in setting their industry average unit price.

(1) "Reporting Period" is set by each commission by administrative rule and means the period of time no longer than one year for which a first purchaser files the assessment report and remits the assessment to the commission. Example: monthly, quarterly, annually, etc.

(2) "Reporting Year" is set by each commission by administrative rule and means 12 consecutive months. Example: August 1 through July 31.

(3) "Assessment Period" is set by each commission by administrative rule and means the current reporting year, or the current reporting year plus the previous one or two reporting years. It is the period producers use to challenge an assessment levied under ORS 576.325(3)(a).

(4) "Limit Period" is set by each commission by administrative rule and means the most recent complete one, two, or three reporting years used by the commission in determining the industry average unit price.

(5) "Arm's-length transaction" is one in which each party is acting independently in such party's own economic self-interest. The purest example of an arm's length transaction is a purchase and sale between strangers in an open market or at public auction. Transactions between a cooperative and its member and transactions among affiliates would not be considered at arm's length.

(1) Within the first 14 days of each reporting year, those commissions assessing pursuant to ORS 576.325(3)(a) must determine by commission vote an industry average unit price for the limit period. The commission must provide notice of the meeting in the same manner as for a proposed budget under ORS 576.425(3). The notice must include the proposed industry average unit price.

(2) Each commission must specifically define the terms to calculate the industry average unit price for the commodity. These terms will be consistent for establishing the assessment rate. Terms to be considered are:

(a) Payment Terms. Standard payment terms for cash or cash equivalents, and whether deductions for the cost of money are to be considered for extended terms.

(c) Commodity Unit. Standard for determining the common unit of measure for the commodity whether by volume, weight, units, dozens, gross, or other.

(d) Commodity Characteristics. Standards for determining the classification or number of classifications of commodity units, whether by grade, variety, size, maturity or other, for which standard purchase and sale transactions will be recognized.

(e) Standard Deductions. Define the standard deductions, if any, from amounts paid to producers that will apply to all commodity transactions.

(1) Any commodity producer who has paid an assessment under ORS 576.325(3)(a) may file a challenge with the commission if the total assessment levied against the producer during the assessment period established by the commission exceeds one and one-half percent of the total dollar value received by the producer for the raw commodity during that assessment period.

(2) A producer may file a challenge by obtaining a Commission Assessment Challenge Form from the relevant commodity commission. The producer must file the completed Challenge Form with a US Postmark dated no later than on the 60th day following the close of the assessment period. Failure to comply with this requirement must result in an automatic denial of the challenge.

(3) The commission must approve or disapprove the challenge in writing within 90 days following the deadline for the challenge. At any time before the commission issues its decision, either the commission or the challenger may request informal methods of resolution. If involved in an informal method of resolution, the 90 day period may be extended by consent of both parties.

(4) If a commission approves the challenge, the commission will refund the challenger within 30 days of the date of the approval for the amount of the assessment that the challenger proves is in excess.

(5) If a commission disapproves the challenge, the producer may file an action in the appropriate court.

(1) All prices for any method of selling the commodity reported on the Commission Assessment Challenge Form must be the same term(s) that the respective commission uses to calculate the industry average unit price and in establishing the assessment rate.

(2) In addition to the Commission Assessment Challenge Form, the challenger must submit the appropriate documentation to demonstrate the price(s) received.

(3) If the challenger is involved in arm's length transactions for all or part of the challenger's commodity production, the challenger must prove the total dollar value received by the challenger during the assessment period.

(4) If the challenger is a member of a cooperative for all or part of the challenger's commodity production, the challenger must use the economic value of the commodity as set by the cooperative's Board of Directors.

(5) If the challenger acts as a first handler or processor for all or part of the challenger's commodity production, the challenger must prove that prices received for the production is equivalent to the prices paid in arm's length transactions. If the challenger is unable to prove the price equivalence, the challenger must use the commission's average price for this production in the respective reporting year.

(6) If the challenger is not involved in an arm's length transaction for all or part of the challenger's production, the challenger must prove that prices received for the production are equivalent to the prices paid in arm's length transactions. If the challenger is unable to prove the price equivalence, the challenger must use the commission's average price for this production in the respective reporting year.

(7) The total dollar value as determined pursuant to these rules is deemed to be "received by the producer" as that term is used in ORS 576.370 in the reporting year during which the commodity was delivered to the first purchaser or handler.

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contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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